Britain’s departure from the European Union (Brexit) has triggered massive capital flows. Ernst & Young estimates that assets totaling nearly 13 billion euros have flowed back to European shores. This is a loss for the UK, but an opportunity for the Eurozone.
According to our RFI 2020 Wednesday, November 4, 2020 in French, according to the Deutsche Bundesbank, nearly 400 billion euros of additional capital could flow back to Germany by the end of 2020. And nearly €150 billion of capital from the London-based branches of French financial institutions will also be repatriated by the end of the year. In this regard, some French economists believe that this is a loss for the UK, because the financial sector has a huge impact on the British economy; on the contrary, it is good news for the eurozone to get back these sums previously managed abroad.
Job Creation
The French economist points out that behind such financial flows are jobs that need to manage this capital. Brexit will be able to bring 7,000 jobs back to the eurozone in the financial sector, and after that, there will be other jobs associated with it: in housing, food, children’s education and clothing, so it will be more than just 7,000 jobs. It will have a dynamic effect on other jobs in other areas.
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